New Reactors: NRC Plans, Process, and Progress

1. New Reactors: NRC Plans, Process, and Progress David B. Matthews Director Division of New Reactor Licensing February 28, 2008

2. Overview of the U.S. Nuclear Regulatory Commission

3. NRC Mission NRC’s primary mission is to protect the public health and safety, and the environment from the effects of radiation from nuclear reactors, materials, and waste facilities. We also regulate these nuclear materials and facilities to promote the common defense and security.

4. NRC Organization • Five member Commission led by the Chairman • Commissioners serve 5-year terms • Approximately 4000 employees and an annual budget approaching $1billion (FY08)—90% paid by user fees • Headquarters in Rockville, Maryland • Four regional offices: • Philadelphia, Pennsylvania • Atlanta, Georgia • Chicago, Illinois • Arlington, Texas

5. NRC Regulates: • Over 100 commercial nuclear power plants that provide about 20 percent of the nation’s electricity • Over 45 fuel facilities involved in the extraction, processing, and fabrication of uranium into reactor fuel • Approximately 5,000 large and small users of nuclear material for industrial, medical, or academic purposes • Low-level and high-level waste facilities, interim storage of spent nuclear fuel, containers used in the transportation of radioactive fuel, and decommissioning of nuclear facilities

6. Completion Times for the Current Fleet Avg = 5.6 yrs Avg = 11.1 yrs

7. Part 50 Licensing Process Construction Permit Application Construction Permit Construction Begins Operating License Application Operating License Operation Begins • Design effort proceeded throughout process • No backfit protection with a CP • Regulatory standards evolved as construction proceeded

8. Nuclear plants will be built more rapidly than their predecessors Detailed engineering essentially complete by start of construction Modular construction techniques will be used Fabrication of components may begin before COL issuance Components and modules will be fabricated in other countries Site preparation work will likely be performed New Construction

9. New Reactor Licensing – The Regulator’s Perspective • Maintain safety of licensed plants • Predictable licensing process • Meaningful public participation • Enhanced safety for future plants • Independent and credible regulator

10. NRO Mission The Office of New Reactors serves the public interest by enabling the safe, secure, and environmentally responsible use of nuclear power in meeting the nation's future energy needs.

11. Outline of Presentation • Energy Policy Act of 2005 • Brief tutorial on Part 52 • Early Site Permits • Design Certifications • Combined License Applications • Design Centered Review Approach • Regulatory Infrastructure • Conclusions

12. Energy Policy Act of 2005 • Authorizes federal risk insurance for the next 6 nuclear plants for delays associated with NRC reviews ($500 M for first 2 plants, $250 M for next 4 plants) • Nuclear energy production tax credits for the first 6,000 megawatts of electricity from new reactors • Authorizes $3 billion in nuclear research and development to support NGNP and NP2010 • EPAct, Section 1703, “Loan Guarantees” • Assists in reducing loan interest rates and allows greater debt-to-equity ratios • Provides guarantees for up to 80 percent of project cost with term not to exceed 30 years

13. Part 52 Licensing Processes • Licensing Processes: • Early Site Permit (ESP) • Design Certification (DC) • Combined License (COL) • Provide a predictable licensing process • Resolve safety and environmental issues before authorizing construction • Provide for timely & meaningful public participation • Encourage standardization of nuclear plant designs • Reduce financial risk to nuclear plant licensees

14. Pre-Construction Early Site Permit Construction Verification Combined License Review, Hearing, and Decision Verification of Regulations with ITAAC Reactor Operation Decision Optional Pre-Application Review Standard Design Certification • Licensing decisions finalized before major construction begins • Inspections w/ITAAC to verify construction • Limited work may be authorized before COL issuance Part 52 - Fitting the Pieces Together

15. Early Site Permits • Allows Early Resolution of Siting Issues and “Banking” of a Site for 10 – 20 Years • Review Areas Include: • Site safety • Environmental impact • Emergency preparedness

16. Design Certifications • Allows an applicant to obtain preapproval of a standard nuclear plant design • Reduces licensing uncertainty by resolving design issues • Facilitates standardization • Higher degree of regulatory finality with design certification

17. Design Certifications, Cont. • Essentially complete design • Final design information • Site design parameters • Interface requirements • Inspections, Tests, Analyses, and Acceptance Criteria (ITAAC)

18. Combined License Applications • Combined construction permit and operating license for a nuclear power plant • May reference an early site permit, a standard design certification, both, or neither • Objective is to resolve all safety & environmental issues before authorizing construction • Prior to fuel load, must verify the facility has been constructed in accordance with the license • The combined license process in Part 52 is fundamental for reducing regulatory risk for companies building nuclear power plants

19. Mandatory Hearing COL -1 Reference One Decision – Multiple Applications DC Review Rulemaking Mandatory Hearing COL -2 Mandatory Hearing COL -3 Mandatory Hearing COL -4

20. Infrastructure – Changes to NRC Regulations • 10 CFR Part 52 Rulemaking • Published as final rule in the Federal Register (72 FR 49351) on August 28, 2007. Rule became effective September 27, 2007. • Limited Work Authorizations for Nuclear Power Plants • Published as final rule in Federal Register (72 FR 57415) on October 9, 2007. Rule became effective on November 8, 2007. • Aircraft Impact Assessment • Commission directed staff to prepare (April 2007) • The proposed rule was published in the Federal Register for a 75-day comment period on October 3, 2007. Staff is evaluating comments.

21. Conclusions • NRC is preparing for an exceptionally high level of new reactor licensing activity • NRC will accomplish its mission to ensure adequate protection of public health and safety and the environment for new reactors licensed under 10 CFR Part 52 • NRC will review applications in a timely manner • Applicants’ applicationsstandardized around the design-centered approach are essential

22. R-COL D.C. S-COL ESP